Iron ore futures declined on Thursday amid rising geopolitical tensions and a broader risk-off sentiment in global markets.
A more hawkish stance from the U.S. administration on the Iran conflict triggered a market sell-off, with concerns over further escalation in the Middle East. Oil prices surged on fears of supply disruption, raising inflation concerns and the possibility of interest rate hikes.
High inventories at major Chinese ports remained a key headwind for iron ore. Market participants noted mixed trends, with some grades seeing destocking while others continued to build, reflecting uneven demand.
Major Chinese steel producer Shagang maintained domestic long steel prices for early April sales, indicating cautious sentiment.
Chinese traders reported moderate demand in the domestic spot market supported by seasonal activity, while export demand remained uncertain due to logistics disruptions linked to Middle East tensions. Vietnam’s decision to extend anti-dumping duties on wider hot-rolled steel products also weighed on sentiment.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 1.29pct to 805 yuan (USD 116.7) per ton. Coking coal and coke futures declined 0.4pct and 0.35pct to 1,131.5 yuan (USD 164) and 1,691.5 yuan (USD 245) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures dropped 0.67pct to 3,106 yuan (USD 451) per ton, while HRC fell 0.55pct to 3,277 yuan (USD 475). Wire rod futures rose 1.9pct to 3,325 yuan (USD 482), while stainless steel futures declined 0.81pct to 14,100 yuan (USD 2,045) per ton.
1 USD / 6.89 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,325.00 | ▲ 1.90 | ▲ 2.23 |
| Hot Rolled Coils | 3,277.00 | ▼ -0.55 | ▼ -0.31 |
| Rebar | 3,106.00 | ▼ -0.67 | ▼ -0.45 |
| Stainless Steel | 14,100.00 | ▼ -0.81 | ▼ -0.57 |
| Iron ore | 805.00 | ▼ -1.29 | ▼ -0.87 |
| Coke | 1,691.50 | ▼ -0.35 | ▲ 0.98 |
| Coking Coal | 1,131.50 | ▼ -0.40 | ▲ 1.50 |
